Box Q3 Performance: Revenue and EPS Miss, Weak Guidance, Shares Tank

Box Inc BOX reported third-quarter financial results after the market closed on Tuesday. Here's a rundown of the report and a look at what's sending shares lower after hours.

• Q3 Revenue: $251.54 million missed estimates of $263.69 million
• Q3 EPS: 36 cents missed estimates of 38 cents

Revenues were up 5% year-over-year. Cash from operations came in at $72 million, up 3% year-over-year, and free cash flow totaled $58 million, up 6% year-over-year. 

"We continue to execute on our Content Cloud strategy, creating the only end-to-end platform that can help customers power their complete content lifecycle in a single architecture," said Aaron Levie, co-founder and CEO of Box.

"By demonstrating our product leadership with Box AI and Box Hubs, we are delivering the platform that customers need to meet the demands of the rapidly evolving era of AI-powered work."

Outlook: Box sees fourth-quarter revenue of $262 million to $264 million versus estimates of $266.96 million. The company expects fourth-quarter earnings to be between 38 cents and 39 cents per share versus estimates of 42 cents per share.

Box expects full-year revenue to be between $1.037 billion to $1.039 billion versus estimates of $1.04 billion. The company sees full-year earnings from $1.42 to $1.43 per share versus estimates of $1.49 per share.

Shares are reacting negatively to the company's worse-than-expected results paired with weak guidance. Management will discuss the quarter on a conference call at 5 p.m. ET.

See Also: MongoDB Q3 Performance Highlights: EPS Beat, Revenue Up 30%, Strong Guidance And More

BOX Price Action: Box shares were down 11.1% after hours at $23.73 at the time of publication, according to Benzinga Pro.

Photo: courtesy of Box.